In their report Santander declare that the Help to Buy Scheme is a major contributing factor to this confidence hike, the second phase of which has recently been brought forward, with 33% of those planning to purchase a home in the next year declaring that they expect to use the scheme’s assistance.
Although the scheme can be used by both first-time buyers and homeowners, the report details that it has impacted most positively on those falling into the first-time buyer bracket, who represent a third (33%) of those likely to buy a home in the next year, while 32% of homeowners plan to buy a new home and 13% plan to buy a second home, while 11% plan to buy a property as a buy-to-let investment vehicle.
The report also details that young professionals are set to be the most active in the UK housing market during the next 12 months, with 18% of 18-34 year olds saying they are likely to buy a house, compared to 9% of 35-54 year olds and only 5% of those aged over 55.
Buyers’ confidence of attaining a property has also been used as a measurement to assess the varying levels of property purchases, regions can expect within the next 12 months. Buyers in London are the most confident of acquiring a new property, with 20% expecting to purchase a property within the next 12 months, compared to 13% last year. Whilst optimism is also high in the West Midlands, with 16% expecting to purchase a new property, up from 7% last year, while buyers from the North West are the third most confident, with 12% expecting to purchase a property, a 5% hike from last year’s total of just 7%.
Homeowners are also seeing the positive effects of the Help to Buy scheme, with 57% of them anticipating an increase in the value of their property, a stark contrast to last year’s results, where conversely, just 29% of homeowners anticipated a price rise.
Those in London are the most confident that the value of their home will increase, with 79% believing it will do so compared to only 2% who believe it will fall. Indeed optimism is high throughout the South, with 64% of home owners in the South East and South West expecting the value of their home to appreciate.
Article adapted from The Economic Voice.